Erkin Qachmas

Abstract

This study aims to evaluate the relationship between the level of poverty in and the amount of income generated by the rural economy, namely agriculture, in the areas studied. We used a deterministic model which has been proved robust in many similar instances. This model is based on the Cobb-Douglas production function, which is widely used to study the economics of the industrial sector. For this study 250 farmers were interviewed using a structured questionnaire. The results of the regression analysis show that household income is positively correlated with family size, number of employed household members, area of land farmed and household savings. These correlations were significant at the 0.05 significance level. Household income is negatively correlated with the working experience of the head of the household, number of self-employed household members and the number of household members working for wages outside the household’s own land. However, these relationships are insignificant at the 0.05 significance level. The value of adjusted R2 in the model shows that almost 98% of the variance or changes in household income are influenced by the independent variables considered in the study.

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